Nippon Paint Holdings Co. acquired Turkish paint manufacturer Betek Boya on Friday. An agreement was signed for the transfer of shares in Betek Boya and its subsidiaries.
Betek Boya, well known in Turkey for its Filli Boya brand of paint, was expected to see sales of TL 1.6 billion ($268.4 million) last year. The value of the deal was not disclosed in the statement.
German firm DAW holds nearly 25 percent of Betek’s shares, while the majority stakeholder is Turkey’s Akpinar family, according to Turkish regulatory filings. In a presentation prepared for investors, Nippon said by this acquisition the company will achieve the largest market share in Turkey besides Asia, and the Pacific region, where a separate acquisition has recently been announced.
“While GDP [gross domestic product] growth has slowed since the second half of 2018, historically Turkey has gone through economic cycles every 6-7 years followed by a rebound within 1-2 years, and considering the population pyramid and growth potential of the Turkish markets, this is the optimal time to invest,” Nippon said.
Betek Group was founded in 1988 and handles ETICS (External Thermal Insulation Composite System: insulation materials) in addition to decorative paint and industrial construction coating. Betek Group is a leading company with the top market share in Turkey’s decorative paint market. Its Filli Boya and Fawori brands have a large market share and a high level of brand recognition.
Nippon is the Asia-Pacific leader with a market value of $ 12 billion and operates in over 20 countries with 20,500 employees. The company earned $ 5.7 billion in sales last year and announced operating profits of $ 800 million.
